We are now getting past the U.S. elections and so I plan to call my CBI contact again tomorrow post-election and get the current scoop to go forward. The US elections are finally here. Will the crooked administration change? What change in policies towards Iraq will a new administration bring us? What will be the aftermath. We know that the elections of 2008 in electing the 44th president Barrack Obama, was pivotal to our investment and we witnessed first-hand the major changes towards the handling of Iraq’s financial system. This is no doubt why we are still here waiting.
I want to start off by bringing the Dr Shabibi plan for the currency reform again to you once again….I know, I know you are getting sick of hearing it, me too! But this is important if you really, truly, sincerely want to know any the timing of the RV. Yes, we all want it now, we wanted it years ago and so what caused the holdup? Are we now going to see it soon?
The fact is the only holdup came from the era of the Obama administration when it changed the U.S. policy towards Iraq from the G.W. Bush policy and the inclusion of Iraq as a main stake in the global financial reform. It was then tied as a linchpin for readjusting fairness in the global currency rates for many countries across the board. The way the policy for changed towards the Iraqi financial system actually happened at about 2011 and was manifested in the conspiracy by the then prime minister, Nori al-Maliki to stop the already moving forward/planned Project to Delete the Zeros in late 2012 and the Reinstatement in early 2013 by Dr Shabibi.
It is important to understand that while under the tutelage of Dr. Shabibi as the director of the CBI, that in his plan he felt the financial reforms could come later and if the reinstatement didn’t happen sooner than later, there would be grave consequences and a long wait for it. He called it an “unprecedented opportunity” in his 2015 interview with the news media. In retrospect he was correct.
So, was this Obama change of policy towards Iraq in 2011 better or worse for Iraq? Here we are 11 years later and still no revaluation or reinstatement. I guess it all matters what side of the fence you are on. Are you an investor or a citizen of Iraq? Are you part of the crooked early exchangers in the Obama administration or the average Joe that bought the dinar and is still waiting?
But since the Dr Shabibi 2015 interview, we learned of other opportunities too for the RV and the other obstacles that came into play when the time came to delay it and delay it. I will not get into them again today. If you have been following my news all along you read it all.
However, here we are again into yet another opportunity. But this time I view this as a more solid approach and so maybe the Obama change in direction was correct after all? By why did the politicians, friends and their relatives exchange already and so this is mainly what really gets my goat about the double standards of politicians who use their influence to better themselves at the expense of others. I prefer to embrace the original Dr Shabibi plan. I can see it could have worked and all could have prospered all these years, not just the crooked politicians. Many of us investors have since passed away, including my brother who was someone like your friends or relatives that will NEVER benefit and enjoy this wealth. So yes, this corruption hit home for me too.
Many of my readers still doubt the Dr. Shabibi plan is in play. The Obama delay is due to idea that the reforms must come first, then the reinstatement later. But Dr Shabibi proved his plan too would have worked. It would have saved the Iraqi people billions and billions in stolen funds. So, we must think. Was the change in policy by Obama intentional much more to save Iraq but also to pander to his friends in Iran as this is where the bulk of these stolen funds went. Remember when I say nothing is coincidental. So, the second approach by the Obama administration is not the same plan as the Dr Shabibi plan. It is just an approach. But it is the process that we should dwell on. The Dr Shabibi process to get to the reinstatement part of his plan is what is important. It still remains intact and is being followed. Why do so many doubt me that it is? Let’s look at the evidence today.
DE-DOLLARIZATION
How much more evidence do I have to show you that we are on now course with the process, the first step of it? The Dr Shabibi plan says they must de-dollarize and so haven’t we seen this effort already? Unfortunately, they will NEVER get to the point of eliminating the parallel market until they can get more of the major global banks to accept the dinar and convert it to dollars to pay merchants to pay their importers. We read articles that so far arrangements have been made with only 4 major US banks for this purpose. There will have to be many more, especially Chinese, European and middle eastern banks. Many importers to Iraq simply still do not want to deal in the dinar. They still want US dollars. Why is this? I have to tell you I have asked this to my CBI contact and I was told its solely because the dinar is still not recognized on the global currency exchanges it is felt is it is still “play money”. So, knowing this we can now connect the dots and see just why Dr. Shabibi want the reinstatement first, if even at a lower rate, then the needed banking reforms to come later. His experience told him this was the case. We now see why he felt this way. But the IMF and global powers said yes originally to his plan to RV but behind the scenes covertly sabotaged his plan.
COLLECTING HOARDS/STASHES OF DINARS
Next, how much more evidence do I have to show you that we are on now course with the process too? The Dr Shabibi plan says they must shrink the monetary mass by almost 2/3 in the process. So haven’t we seen this effort now under way? Hint, “Cash Centers”. I have also asked my CBI contact about this latest move and I was told it is two-fold: First to bring liquidity to the banks in order that they can loan out some of this money, next to electronically digitize the money so they will be able to better manage it later, to shrink the monetary mass as a course of “de-flation” or deflating the currency. Remember they just told us in articles from the CBI that in 2004 that the monetary mass of the 3 zero notes was only about 40 trillion dinars and now they are at 100 trillion dinars. They need to shrink it back. The was due to inflation.
PILLARS OF FINANCIAL REFORM
I know you are also a bit sick of hearing about these three major reforms groups from the White Paper. But haven’t we also seen so much progress on these reforms too? I have been showing all the articles on these Insurance but especially the Banking and Stock Market reforms. I have been emphasizing them whenever we see them. Remember? They are still ongoing and probably will be even after the reinstatement is done.
- Consolidation of banks, mandating only “official” CBI rates, ending corruption
- Assignment of banks to foreign banks to replace the currency auctions
- Reforms of the Iraqi stock market. Implementing a new investor interface to trade
In an article today titled “FOCUS ON THE BANKING SECTOR’, and I quote from it “Yasser Al-Mutawali notes these days a growing interest in the banking sector in general, both governmental and private. What does this trend mean? This comes amidst a noticeable shift in attention towards the banking sector, through the government allocating significant time in light of its great responsibilities, which means its awareness that all economic activities, including the implementation of strategic projects and means of encouraging investment, require a solid banking sector to implement its economic programs.”
Now you heard it from Yasser and so isn’t this what I have been telling you. Now that many of these banking reforms are working the government shifts its attention and focus more to the 2024 and 2025 budgets to the “implementation of strategic projects and means of encouraging investment”. Basically, now Iraq’s attention moves away from the banking and stock market sectors, the reforms and now to goes to the economy.
So today in a very recent from a Nov 3rd article titled “IMPORTS AND DEPENDENCE ON OIL ARE OBSTACLES TO IRAQ’S ACCESSION TO THE WORLD TRADE ORGANIZATION” we read about “the financial advisor to the Prime Minister, Dr. Mazhar Mohammed Salih, said: The Iraqi economy lacks regulatory and supervisory regulations in the scope of trade relations and international requirements according to internationally approved standards”. Is this the hold up then?
In an article titled “THE GOVERNMENT COMPLETES THE FILE TO JOIN WTO”, in it we read that “Iraq has become an economic power that should not be underestimated, and has all the qualifications and capabilities to join the World Trade Organization (WTO) after completing all preparations for that”. So, what the hell is this recent article by Salih anyhow? What is Salih trying to tell us? Is he just trying to justify somehow the delay in the WTO full accession announce letting us think there is still much work to be done as the holdup? We are not stupid. We can read. Why is this announcement delayed?
